U.S. Treasury Yields Soar Amid Global Bond Selloff
A deepening global bond selloff sent U.S. Treasury yields surging to their highest level in nearly two years as investors worry about inflation and a surge in corporate debt supply.
The 10-year benchmark yield climbed around two basis points to 4.75%, the highest since January 2025, as the market continues to grapple with concerns over rising prices and the Fed's next move.
A busy August issuance slate saw $9.1 billion in notes sold by 12 issuers on Monday, contributing to the selloff. Ian Lyngen, head of U.S. rates strategy at BMO Capital Markets, noted that 'the selloff in Treasuries has become a macro event unto itself.'
The moves were echoed across sovereign debt markets from Europe to Japan, with Germany selling 30-year debt via banks paying the highest yield in 15 years.